House prices rose by 6.1% in the year to September 2015, according to the Office for National Statistics (ONS).
That was up from 5.5% in August, and 5.2% in July. It brings the average house price to £286,000.
However, the rise is still much lower than a year previously, when prices were rising by more than 12%.

http://www.bbc.co.uk/news/business-34842248

Given the lack of payrises how long before a proper crash back to realistic levels or will borrowing just increase?

Given the lack of payrises how long before a proper crash back to realistic levels or will borrowing just increase?

House Prices are being carefully managed by the BOE and Government on the quiet – we can’t afford a ‘market correction’ because a large portion of the balance sheets of our Banks is made up of mortgages, house prices crash, banks become insolvent again – they can’t lend, credit crunch.

I personally believe the BOE would like to maintain a flat market, at least to allow wages to catch up, Government would prefer a slightly growing market as it’s a decent ‘feelgood factor’ (despite it being a bad thing for most people).

the London property boom is fuelling much of it, but expect interest rate rises next year to try to slow it and large house building projects to readdress the supply/demand element.

With the way things are at the moment, there won’t be a large scale fall unless things go very wrong.

Personally, I think we are still a few years off the major issue. The issue is all the older (retired) folk that have bought cheap, ‘benefited’ from massive rises, and now still live in their 5-bed house they think is worth a half a million or more, and will look for a buyer as they move into a care home / die / tax bill to pay….

House Prices are being carefully managed by the BOE and Government on the quiet – we can’t afford a ‘market correction’ because a large portion of the balance sheets of our Banks is made up of mortgages, house prices crash, banks become insolvent again – they can’t lend, credit crunch.

^This.

A credit-fuelled consumer spending ‘recovery’ buoyed up by an artificially inflated house price boom, stoked by a still unregulated banking industry?

What could possibly go wrong?

matt_outandabout – Member

Personally, I think we are still a few years off the major issue. The issue is all the older (retired) folk that have bought cheap, ‘benefited’ from massive rises, and now still live in their 5-bed house they think is worth a half a million or more, and will look for a buyer as they move into a care home / die / tax bill to pay….

Possibly, when people talk about people like you mention they’re generally talking about the ‘Baby Boomber’ generation born 49 to 64 – about 25% of them are at pension ago now, but not really ‘old’ yet – carehome age is generally 80+ plus now (being very general).

One indicator though that rarely gets mentioned is the number of houses being sold – it’s been on a downward trend for quiet a while now – first time buyers always drive the market – mortgages and more importantly deposits are very hard to get at the moment.

I personally believe the BOE would like to maintain a flat market, at least to allow wages to catch up, Government would prefer a slightly growing market as it’s a decent ‘feelgood factor’ (despite it being a bad thing for most people).

Strangely this ^^

House Prices are being carefully managed by the BOE and Government on the quiet

Not saying you’re wrong, but how?

Are prices really going up by that much over the whole country or does some Russian Oligarch buying something in Kensington for £55m not skew the figures somewhat?

I await to see it, just took an additional mortgage out on ours to pay for an extension and according to the surveyor it’s not gone up in almost 10 years. T***!!!

It’s been great fun watching as the standard and location of house I will be able to afford gets shitter and shitter every 6 months.

Really helps keep you motivated to put the money away each month.

A credit-fuelled consumer spending ‘recovery’ buoyed up by an artificially inflated house price boom, stoked by a still unregulated banking industry

I was having a chat with our friendly local estate agent ( london) , apparently 75% of his company’s purchases in the past year have been cash!!Of those cash sales, 100% were foreign investors.
This , in his opinion has perpetuated the crazy price rises down here.
Our’s is up 25% in two years. bonkers.

It’s been great fun watching as the standard and location of house I will be able to afford gets shitter and shitter every 6 months.

Indeed, house prices rising faster than my deposit savings is very depressing. Tempted to keep renting and blow the lot on Pepsi and those blokes from the middle of a rugby scrum (I’ve heard it’s the done thing).

scandal42 – Member

It’s been great fun watching as the standard and location of house I will be able to afford gets shitter and shitter every 6 months.

Really helps keep you motivated to put the money away each month.

Yep,

I hate to say it, but I’ve just given up – we were saving £600 a month to try to get the £10k minimum we need to buy a place – it was hard work to say the least, no money ever, I mean literally no disposable cash whatsoever – so if/when something went wrong we had to take money from the savings to cover it. We set a target of next summer, but that slipped to October and it was likely to slip further. The stress and strain I’m sure contributed to me ended up in hospital with Pneumonia.

We’re moving to a bigger (rented) place in Jan, the increase in rent means we can’t save anymore so, we’ve pretty much waved the flag. Sick as it sounds we’re waiting for my Wife’s Grandmother to pass so we can buy a place, that sounds really really horrible, at least she’s in her late 90’s and has been wanting to go for more than a decade.

No sign of much price rise here, in unfashionable North. Plenty to choose from among older terraces and smaller semis below £80k. New build 3 bed semi from £120k. If you can handle the dodgier areas, there are loads under £50k. Easy commutes to Leeds, Sheffield or anywhere you like along the A1, M1, East Coast Main Line.

Government would prefer a slightly growing market as it’s a decent ‘feelgood factor’ (despite it being a bad thing for most people).

Yeah, I don’t like the “yay, house prices have gone up” attitude. What are you going to do with the extra money? More than likely buy another house that’s gone up by the same percentage that yours has. Higher house prices then fuel higher rents, which means people not ‘on the ladder’ end up further away from the first rung (as per the poster above).

The constant house prices up is a mugs game, that sadly I fell for over a good few years. 😕